TELSTRA GROUP LIMITED — Capital/Financing Update 2010

May 9, 2010

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Issue Date: 10 May 2010 ASX Company Announcements # PIE0000254

Page: 1 of 1

TELSTRA

As previously announced on March 8[th] , 2010 pieNETWORKS and Telstra Corporation Limited (“Telstra”) have entered into a 2 month exclusive negotiation period in order to agree the terms of a partnership for the deployment of pieNETWORKS’ Hotspot Webphone in a market assessment for the Australian market.

pieNETWORKS and Telstra have agreed to extend the 2 month exclusive negotiation period to June 4th, 2010.

For more information please contact:

pieNETWORKS Ltd Campbell Smith Managing Director +61 8 9444 9088 www.pienetworks.com

pieNETWORKS Limited A.C.N. 078 661 444 A.B.N. 27 078 661 444 ASX Code PIE 75 Collingwood Street Osborne Park Western Australia 6017 tel (+61 8) 9444 9088 fax (+61 8) 9444 9022

www.pienetworks.com